About Tenneco Clean Air India Limited
Tenneco Clean Air India Limited is a part of the Tenneco Group, a US-headquartered global Tier I automotive component supplier. The Tenneco ... Group reported revenue of US$16,777 million for the year ended December 31, 2024.

The company established its first manufacturing plant in India in 1979 at Parwanoo. It manufactures and supplies critical, highly engineered, and technology-intensive clean air, powertrain, and suspension solutions for Indian OEMs and export markets.

Its customer base includes OEMs operating in passenger vehicles (PVs), commercial vehicles (CVs)—comprising commercial trucks (CTs) and off-highway vehicles (OHs)—as well as industrial and other applications, including generator sets, small commercial vehicles with gross vehicle weight below 3.5 tons, two-wheelers, and three-wheelers.

Tenneco Clean Air India also serves the aftermarket primarily through Motocare India Private Limited, a subsidiary of Tenneco LLC and a Group company. The company benefits from its long-standing relationships with India’s leading OEMs, the ability to leverage Tenneco Group’s global R&D for proprietary and modular solutions, and its end-to-end engineering capabilities within India.

Additionally, it operates an efficient and flexible manufacturing model and optimizes shared and reusable assets across facilities and regions.

As of March 31, 2025, the company operated 12 manufacturing facilities across seven states and one union territory, including seven Clean Air & Powertrain Solutions facilities and five Advanced Ride Technology facilities. In FY25, it served 119 customers, including all top seven passenger vehicle OEMs and all top five commercial truck OEMs in India.

Driven by the Tenneco Group’s values and in-house operating models, Tenneco Clean Air India delivered strong financial performance in FY25, reporting revenue from operations of ₹48,904.30 million and a VAR of ₹43,801.21 million. The company achieved an EBITDA margin of 16.67% (18.61% as a percentage of VAR), a PAT margin of 11.31% (12.63% as a percentage of VAR), a free cash flow to EBITDA ratio of 61.04%, and a return on capital employed (ROCE) of 56.78%.

Strengths and Opportunities of Tenneco Clean Air Limited

1. Market leadership in supplying critical, highly engineered clean air, powertrain, and suspension solutions to leading Indian and global OEMs.
2. Strategically diversified portfolio of proprietary products and solutions, well-positioned to capture industry and market trends.
3. Broad and customised product range, including exhaust aftertreatment systems, engine bearings, sealing systems, spark plugs, shock absorbers, and advanced suspension systems.
4. Innovation-driven approach leveraging Tenneco Group’s global R&D initiatives for proprietary, modular, and customized products at competitive Indian price points.
5. Strong IP portfolio with over 5,000 patents (granted and pending) and 7,500+ trademarks (granted and pending) worldwide as of May 31, 2025.
6. Flexible and automated manufacturing footprint with 12 strategically located facilities across seven states and one union territory in India, supported by a localised supply chain.
7. Opportunities arising from tightening emission standards, offering potential for growth in clean air and powertrain solutions.
   Capitalizing on automotive trends such as premiumisation, increasing SUV demand, and the adoption of EVs and hybrid vehicles, while enhancing competitiveness through strategic localisation under the “Make in India” initiative.
    

Risks and Threats of Tenneco Clean Air Limited

1. Heavy reliance on the Indian PV and CV sectors, exposing revenue to industry downturns.
2. Dependence on top ten customers, with over 81% of revenue from them, risks business if any stop sourcing.
3. Lack of firm volume commitments in customer agreements may impact realization of awarded program sales.
4. Business sensitive to government emission policies; delays could affect growth.
5. Profitability reliant on raw material availability and costs, including steel and components.
6. Dependence on Tenneco Group for licenses, patents, R&D, and materials may impact operations if relationships change.
7. Reliance on Motocare and related-party transactions may limit negotiating leverage and affect results.
8. Export strategy and Clean Air & Powertrain Solutions division exposed to global headwinds, electrification risks, and reduced IC engine demand.